Exhibit 99.1
QUIGLEY
FOR IMMEDIATE RELEASE
CONTACT:
George J. Longo Carl Hymans
Vice President, CFO G.S. Schwartz & Co.
(215) 345-0919 (212) 725-4500
carlh@schwartz.com
THE QUIGLEY CORPORATION REPORTS FIRST QUARTER RESULTS;
INCREASES INVESTMENT IN PHARMACEUTICAL R&D FUTURE
DOYLESTOWN, PA. - APRIL 26, 2007 - THE QUIGLEY CORPORATION (NASDAQ: QGLY) today
reported net sales of $9.1 million, for the first quarter ended March 31, 2007,
compared to $10.3 million reported for the same period in 2006.
The first quarter of 2007 reflects a net sales increase for the Company's Cold
Remedy segment of $363,000 as compared to the first quarter of 2006. Although
consumer purchases were relatively unchanged for the first quarter of 2007
compared to 2006, our customers shifted their buying patterns to adjust for
their low inventories during 2007.
Net sales for the Cold Remedy segment were not affected by factors that were
present for the same period in 2006, which included inordinately warm weather
with a lower incidence of upper respiratory ailments combined with a shift in
buying patterns by our customers, which resulted in higher than expected
inventories of our customers during 2006. Additionally, the growth of Immune
Booster products continues to impact consumers that have used COLD-EEZE(R) in
the past while they search for a product to help them avoid catching a cold
versus treating one.
As the Company's resources are invested in pharmaceutical research and
development, investment in advertising for the COLD-EEZE brand at comparable
levels as competitors is limited. The Company believes in the viability of the
COLD-EEZE brand among the growing number of consumers who want Natural Common
Cold remedies that demonstrate proven clinical efficacy and safety unlike most
other unproven natural remedies.
A decline of $1.6 million in net sales for the Health and Wellness segment for
the first quarter of 2007 reflects the continued reduction in the number of
active independent distributor representatives and the effects of litigation
with the sponsor of the Company's product line in this segment, notwithstanding
the fact that the U.S. District Federal Court for the Eastern District of
Pennsylvania has issued a preliminary injunction in favor of the Company against
this sponsor. This and other corrective actions, have been and continues to be
the ongoing focus for this segment to increase the number of active independent
distributor representatives, with the goal to increase sales.
Net loss for the first quarter ended March 31, 2007 was $1.9 million, or $0.15
per share compared to a net loss of $1.5 million, or $0.12 per share, for the
same period last year.
The increase in net loss for the first quarter ended March 31, 2007 as compared
to the same period in 2006 is principally due to lower gross profits from the
aforementioned related net sales declines in the Health and Wellness operating
segment. This increase in net loss was lessened somewhat by improvement in Cold
Remedy gross profits from related increases in net sales. Gross profit
percentages for all segments slightly improved for 2007 as compared to 2006.
In addition, increases in operating expenses for costs associated with
advertising and research and development were mitigated by decreases in legal
fees relative to the lawsuits for the Company added to the increase in net loss
for 2007 as compared to 2006.
No tax provision or benefits, to reduce losses, are provided for the quarter
ended March 31, 2007 and 2006, except for any requirements imposed by the
federal alternative minimum taxes or for compliance with state tax regulations,
since the Company is in a net operating loss carry-forward position.
The Company is committed to continuing its research as part of its strategic
initiatives to generate future growth. These initiatives include capitalizing on
the growth potential of Quigley Pharma, a wholly-owned Ethical Pharmaceutical
subsidiary, by continuing to develop natural-source potential prescription
products for Systemic Radiation, Rheumatoid Arthritis, Avian Flu in animals and
particularly, Diabetic Peripheral Neuropathy.
The following is a summary of major ethical pharmaceutical events that occurred
during the first quarter of 2007:
AVIAN FLU COMPOUND - QR-441(A): Positive results were achieved in a preliminary
study which demonstrated the compound to be a potential antiviral agent in
reducing Infectious Bronchitis and New Castle Disease, two viral poultry
diseases that have a significant economic impact to the poultry industry on an
annual basis. Previous in vitro studies have demonstrated QR-441(a) to be a
potent antiviral agent against H5N1 (Avian Flu).
The value of a broad spectrum antiviral addressing multiple viral pathogens in
poultry stocks increases the potential utility of the compound for routine
commercial application as well as its use in the event of more serious Avian Flu
outbreaks.
In addition, an agreement was signed with the State of Israel Ministry of
Agriculture & Rural Development (MOAG) and the Kimron Veterinary Institute to
conduct a clinical trial testing QR-441(a) administered as a medical feed and
water to chickens exposed to HPAI (Highly Pathogenic Avian Influenza) H5N1. If
successful this study could potentially provide data on the efficacy of the
compound in preventing the infection of food grade poultry through the use of
formulated feed and water. Positive data could be used to continue the
development of the compound in the US with FDA guidance under the INAD's issued
to Quigley in 2005 and also useful for development outside the United States,
where the impact of disease has already been felt. Based upon the outcome of
this test, the Company has options to test alternate delivery methods and for
efficacy against other poultry respiratory pathogens such as Newcastle's disease
and Infectious bronchitis, for which the compound has been shown to be
effective.
CACHEXIA TREATMENT COMPOUND - QR-443: Further positive results were obtained for
the QR-443 compound for the treatment of Cachexia, a debilitating and life
threatening muscle wasting condition associated with cancer, AIDS, renal
failure, COPD and rheumatoid arthritis, where inflammation has a significant
impact and patients experience loss of weight, muscle atrophy, fatigue, weakness
and decreased appetite. A preliminary follow up Cachexia study, evaluating
weight loss in mice concluded that QR-443 was as effective in delaying the
progression of Cachexia when given orally as it had been shown to be when
administered intra-peritoneally in a previous study. The new data compliments
the previous study results demonstrating a correlation between effectiveness and
the frequency of administration of the QR-443 compound.
PATENT FOR PROPHYLACTIC AND ANTI-TRANSMISSIVITY USES OF AN ANTI-MICROBIAL
COMPOSITION - This patent provides additional protection to an existing
composition patent and further supports on-going investigations and potential
commercialization opportunities for its compounds against avian flu (QR-441(a))
and human influenza (QR-435).
The Quigley Corporation makes no representation that the US Food and Drug
Administration or any other regulatory agency will allow this Investigational
New Drug to be marketed. Furthermore, no claim is made that potential medicine
discussed herein is safe, effective, or approved by the Food and Drug
Administration.
Additionally, data that demonstrates activity or effectiveness in animals or in
vitro tests do not necessarily mean the formula test compound; referenced herein
will be effective in humans. Safety and effectiveness in humans will have to be
demonstrated by means of adequate and well-controlled clinical studies before
the clinical significance of the formula test compound is known. Readers should
carefully review the risk factors described in filings the Company files from
time to time with the Securities and Exchange Commission.
ABOUT THE QUIGLEY CORPORATION
The Quigley Corporation (Nasdaq: QGLY, HTTP://WWW.QUIGLEYCO.COM) is a
diversified natural health medical science company. Its Cold Remedy segment is a
leading marketer and manufacturer of the COLD-EEZE(R) family of lozenges, gums
and sugar free tablets clinically proven to cut the common cold nearly in half.
COLD-EEZE customers include leading national wholesalers and distributors, as
well as independent and chain food, drug and mass merchandise stores and
pharmacies. The Quigley Corporation has several wholly owned subsidiaries.
Darius International markets health and wellness products through its wholly
owned subsidiary, InnerLight Inc. Quigley Manufacturing Inc. consists of two FDA
approved facilities to manufacture COLD- EEZE(R) lozenges as well as fulfill
other contract manufacturing opportunities. Quigley Pharma Inc.
(HTTP://WWW.QUIGLEYPHARMA.COM) conducts research in order to develop and
commercialize a pipeline of patented botanical and naturally derived
prescription drugs.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and involve
known and unknown risk, uncertainties and other factors that may cause the
Company's actual performance or achievements to be materially different from the
results, performance or achievements expressed or implied by the forward-looking
statement. Factors that impact such forward-looking statements include, among
others, changes in worldwide general economic conditions, changes in interest
rates, government regulations, and worldwide competition.
Consolidated Statements of Operations (Unaudited)
The following represents condensed financial data (in thousands) except per
share data:
Three-Months Three-Months
Ended Ended
March 31, 2007 March 31, 2006
($) ($)
---------------------------------
Net Sales 9,078 10,266
Gross profit 5,010 5,313
Sales & marketing expenses 2,733 2,435
Administrative expenses 3,212 3,705
Research & development 1,153 785
Income taxes (benefit) -- --
Net loss (1,928) (1,454)
Diluted income (loss) per share:
Net income (loss) ($0.15) ($0.12)
Diluted weighted average common shares outstanding: 12,684,633 11,714,140
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
The following represents condensed financial data (in thousands) at March 31,
2007 and December 31, 2006:
2007 2006
($) ($)
------ ------
Cash & cash equivalents 19,175 17,757
Accounts receivable, net 2,746 6,557
Inventory 4,164 4,262
Total current assets 27,069 29,793
Total assets 31,998 34,845
Total current liabilities 8,332 9,252
Total stockholders' equity 23,601 25,529